Question: 1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession. 2. Now you have a perpetuity

1. Please try to explain why an inverted yield curve from Treasury

1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession. 2. Now you have a perpetuity that pays $30 every month. The first payment happens in exactly one month. The annual interest rate is 3% by compound interest. What is the price of this perpetuity right now? What is the price if the 3% is the interest rate for one month?

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